April 18, 2023
Richmond Housing Authority (RHA)
Economic Development
DATE: April 18, 2023
TO: Chair Martinez and Members of the Board of
Commissioners of the Richmond Housing Authority
FROM:
Gabino Arredondo, RHA Interim Executive Director
Nannette Beacham, Director of Economic Development
Mubeen Qader, Deputy Director of Finance
Rita Martinez, Senior Accountant
Subject:
Cost Allocation Plan
FINANCIAL IMPACT: Approval of the cost allocation plan will allow the City to charge administrative or indirect services costs to the Richmond Housing Authority.
PREVIOUS COUNCIL
ACTION:
7/27/2021
STATEMENT OF THE
ISSUE:
As part of the financial related tasks of the Public
Housing Authority Recovery and Sustainability (PHARS)
Agreement, development of a United States Department
of Housing and Urban Development (HUD) approved
Title 2 Code of Federal Regulations 200 (2 CFR Part
200) Compliant Version Cost Allocation Plan to be
implemented for Richmond Housing Authority budgets.
RECOMMENDED ACTION:
ADOPT a resolution approving the Title 2 Code of
Federal Regulations 200 Compliant Version Cost
Allocation Plan - Richmond Housing Authority/Finance
(Gabino Arredondo 510-620-6606/ Rita Martinez 510-
621-1546).
AGENDA
REPORT
April 18, 2023
DISCUSSION:
The Richmond Housing Authority (RHA) and City of Richmond Finance Department are requesting approval of the Title 2 Code of Federal Regulations 200 (2 CFR Part 200) Compliant Version Cost Allocation Plan to support the development of RHA’s Central Office Cost Center (COCC) and budgets, which is a Public Housing Authority Recovery and Sustainability (PHARS) Agreement deliverable.
The objective of the cost allocation plan is to quantify the costs incurred by the City of Richmond and establish a reasonable amount of costs to be recovered from the United States Department of Housing and Urban Development (HUD) on behalf of RHA.
On July 27, 2021, the RHA Board of Commissioners approved consultant NBS to prepare the 2 CFR Part 200 Compliant Version Cost Allocation Plan. Following completion of the fiscal year 2022-23 Cost Allocation Plan version, it was submitted to HUD Region 9 staff for review and approval. HUD responded that since the City of Richmond is below the $100 million threshold for formal approval by HUD, the Cost Allocation Plan, once developed, needs to be kept on file for audit purposes. A second recommendation from the HUD Region 9 staff was for the RHA Board of Commissioners to consider and approve the Cost Allocation Plan. Richmond Housing Authority staff are now submitting that final plan to the Board of Commissioners for final adoption.
DOCUMENTS ATTACHED:
Attachment 1 - Resolution
Attachment 2 - Cost Allocation Plan FY 2022-23 - Title 2 CFR, Part 200 Compliant